Brokerages turn cautious after Kaynes’ weak Q4 performance

Mumbai: Shares of Kaynes Technology plunged 20% to ₹3,339.25 on Thursday after a weaker-than-expected earnings performance in the March quarter, and revenue guidance miss sparked analyst downgrades. Brokerages said concerns over execution delays, stretched working capital, and persistent cash burn are tailwinds for the stock, an investor favourite in the recent bull run amid enthusiasm around India’s electronics manufacturing and semiconductor story.

“While we still expect strong 40%/45% revenue/earnings CAGR (compounded annual growth rate) over FY26-28E thanks to the ramp up of OSAT (Outsourced Semiconductor Assembly and Test) and PCB (Printed Circuit Board) businesses, we believe the stock will remain a ‘show me’ until the gap between actual numbers and company guidance narrows,” said JP Morgan in a client note, while downgrading the stock to Neutral and cutting the price target to ₹4,000 from ₹6,000

Since its listing in November 2022, Kaynes shares soared about 950% from its listing to ₹7,822 in January 2025. Since then, the stock has dropped nearly 57%